Companies in the field of production and manufacturing in Republic of Korea are currently supervising data (performances, un-availability, defects and others) of scenes of production in various ways by keeping production logs, making good use of IT solutions and others. The companies are establishing production plans and controlling the scenes of production based on such data and yet, most of small or medium-sized businesses do not appear to conduct any systematic supervision onto the data of the scenes of production. Some of such companies have introduced diverse IT solutions such as ERP, MES, POP and others to manage data in an organized fashion but, they find most of the solutions ineffective or unhelpful. Regarding factors to cause the companies’ dissatisfaction with the solutions, the study believes, first, that the companies have not established some standardized information in relation to the scenes, second, that the companies do not have clear ideas about how to combine one information of a solution with other information of a different solution, third, that the companies have failed to encourage or support their divisions to communicate with each other and fourth, that the companies have introduced these IT solutions that had not been yet optimized good enough to deal with changes in the companies’ production and manufacturing environments (4M-Man, Machine, Material and Method). In order to resolve the problems above, a new factory operation and management method should be designed which would constantly control productive capacity by collecting 4M information and conducting the most careful supervision and accurate analysis as considering all these rapidly-changing characteristics of the small and medium-sized manufacturing companies. In the light of that, this thesis carried out a research on how to develop a software-based digital factory FOM (Factory Operation Management) solution to help reasonable and efficient operation of factories. The study regards the proposed solution as a solution to increase productivity of a company by eliminating the seven greatest wastes occurring in the scenes of production and by analyzing processes. After all, the solution presented in the study leads companies not only to come up with productivity plans to stabilize systems and to cope with the quantity of orders received but also to operate their factories in rational ways depending on changes in 4M, which would, again, eventually improve productive capacity of the companies.